cost: initial cost of asset
purchase_date: date of purchase
first_period: end of first period
salvage: value after depreciation
period: subject period
rate: depreciation rate
basis: calendar basis
AMORDEGRC calculates the depreciation of an asset using French accounting conventions. Assets purchased in the middle of a period take prorated depreciation into account. This is similar to AMORLINC, except that a depreciation coefficient is applied in the calculation depending on the life of the assets.
The depreciation coefficient used is:
1.0 for an expected lifetime less than 3 years,
1.5 for an expected lifetime of at least 3 years but less than 5 years,
2.0 for an expected lifetime of at least 5 years but at most 6 years,
2.5 for an expected lifetime of more than 6 years.
Special depreciation rules are applied for the last two periods resulting in a possible total depreciation exceeding the difference of cost - salvage. Named for AMORtissement DEGRessif Comptabilite. If basis is 0, then the US 30/360 method is used. If basis is 1, then actual number of days is used. If basis is 2, then actual number of days is used within a month, but years are considered only 360 days. If basis is 3, then actual number of days is used within a month, but years are always considered 365 days. If basis is 4, then the European 30/360 method is used.